Are you ready to finance a car with poor credit? We know the obstacles that Norwalk residents with bad credit struggle with. After you submit your application, we can find you a loan expert in your part of Connecticut.
Norwalk Car Lots for Bad Credit
If you’re searching for an auto dealer that approves poor credit, your search is over. More often than not, these dealers offer:
- Interest rates that are fair.
- Down payments that are reasonable.
- New vehicles, as well as used ones.
The dealer will review your credit and income to decide the cars you are eligible to finance. It is far better go with an affordable, dependable vehicle with payments of just 10% of your income–any higher, and you’ll be at a high risk of repossession. If you earn $2,633 per month, this equates to a payment of $263. Apply online to speak with a vehicle finance expert about how much car you can afford.
Reducing Your Norwalk Interest
Interest rate is extremely important if you want to limit the amount you will wind up spending on your vehicle. Think about this: a $23,697 car loan, financed for 60 months, would cost you the following:
- 3.50% APR: $2,168 in interest.
- 7.00% APR: $4,457 in interest.
- 11.00% APR: $7,217 in interest.
If you want to get the lowest rate possible, make sure you check your credit report for any errors. If you find one, send a letter to the credit agency where the issue is being reported. This is a quick and simple way to raise your credit score. Also, paying down any existing debt can scale down your debt-to-income ratio (DTI), thereby reducing your rate of interest. Lenders charge less to finance cars for 3-4 years than for 5 years or more, and you aren’t as likely to end up under water on a shorter-term loan. Last but not least, how much of a down payment can you supply? Down payments bring down your loan-to-value ratio, and therefore your interest rate.
Buy Here Pay Here Car Dealers in Norwalk, CT
Generally known as buy here pay here, tote the note, or your job is your credit car dealerships, these establishments generally have a few main features. They…
- Grant car loans on location.
- Do not perform credit checks.
- Ask for weekly or biweekly payments, often at the lot.
For people with really bad credit, Norwalk buy here pay here car lots in many cases are the only real way to go, even though there are quite a few downsides:
- Elevated Loan Rates
- In-Person Payments
- High Risk of Repossession
Recommendations for Financing
Here’s a great guideline to follow: at most, around 10% of your monthly income should be dedicated to your monthly payment. Be mindful, though, that you don’t opt for a loan term of more than 60 months, which may lead to more interest and negative equity. Rather, strive to have your vehicle paid off within 60 months. With a 10% monthly installment and 60 month term, you will be purchasing a car or truck which costs approximately half of what you earn annually. For Norwalk residents, having incomes of $31,599 per annum, this is $15,798. Cars don’t appreciate like most homes do, so you’ll want to spend the minimum amount you can and still obtain a solid car.